PROSYNERGY BOOKKEEPING

May 2026 Financial Review

Lower Mill Farmstead LLC · Prepared by Ashish

This is your monthly financial review from Prosynergy Bookkeeping. Each month you'll find a plain-English summary of your income, expenses, and cash position — plus a video walkthrough, key insights, and one forward-looking action item. Watch the video first, then explore the sections below.

Video Walkthrough

May Revenue

$165,041

vs $205,748 in April

↓ $40,707

May Net Income

($7,042)

vs +$18,833 in April

Timing issue — see insights

Cash Balance

$105,702

vs $95,300 in April

↑ $10,402

Profit Quality

Cash Positive

+$10,402 cash despite accounting loss

Strong

"May's net loss is a compensation timing story — gross profit hit $28,688, the strongest of the 4-month window, but a catch-up owner draw and contract labor surge swamped it."

Three Power Insights

Net Loss Traces to Compensation Timing, Not Business Weakness

April showed $0 in Guaranteed Payments; May jumped to $15,986 — likely two months combined. Add $8,000 in contract labor and operating expenses hit $35,730 on $28,688 in gross profit. A consistent monthly draw would smooth this out entirely.

Set a fixed monthly Guaranteed Payment of ~$8,000 going forward

Shipping Costs Are Compressing Margins Without Recovery

March gross margin crashed from 21% to 10% when shipping jumped from $1,203 to $8,487. Shipping now runs $10,000–$12,000 every month at 6% of revenue. Shipping income captured in May: $5. The gap is significant and entirely recoverable.

Review whether shipping charges are being passed to customers or absorbed

One Customer Holds 88% of Outstanding A/R

Bernard McAnena accounts for $8,650 of the $9,859 in current A/R — 88% concentration in a single name. The balance is current with no aging concerns, but this level of dependency is worth monitoring. If this customer slows payment, collections tighten fast.

Profit & Loss — Feb through May 2026

Line Item	Feb	Mar	Apr	May	4-Mo Avg
Revenue	$133,489	$147,218	$205,748	$165,041	$162,874
Cost of Goods Sold	$105,009	$132,807	$180,295	$136,352	$138,616
Gross Profit	$28,481	$14,412	$25,453	$28,688	$24,258
Gross Margin %	21.3%	9.8%	12.4%	17.4%	15.2%
Guaranteed Payments	$4,829	$5,329	$0	$15,986	$6,536
Contract Labor	$3,500	$4,100	$250	$8,000	$3,963
Advertising	$2,376	$1,426	$3,991	$5,977	$3,443
Bookkeeping	$456	$806	$953	$3,771	$1,497
All Other Expenses	$4,090	$1,776	$1,426	$1,996	$2,322
Total Operating Expenses	$15,251	$13,437	$6,620	$35,730	$17,760
Net Income	$13,230	$975	$18,833	($7,042)	$6,499

Cash Flow — Where the Money Moved (May 2026)

What This Means

Gross Profit

Added $28,688 — strongest month in the 4-month window.

Operating Expenses

Pulled out $35,730 — mostly owner draws ($15,986) and contract labor ($8,000). Timing issue, not a trend.

Inventory Release

$19,553 in equipment moved off the shelf and converted to cash.

A/R Collections

Customers paid $5,810 faster than new billings came in.

Bottom Line

Despite the -$7,042 accounting loss, cash grew $10,402. The business ended May at $105,702.

Key Accounts Snapshot

Cash in Bank

$105,702

↑ from $95,300 in April

Accounts Receivable

$21,117

DSO: 3.8 days · All current ✓

Inventory on Hand

$137,157

↓ from $156,710 — equipment moving

Accounts Payable

($12,100)

⚠ Negative balance — vendor credits

Credit Cards (Net)

$13,494

Chase — manageable

Long-Term Debt

None

Fully owner-funded ✓

Financial Health Ratios

Healthy

Current Ratio

29.7

Assets cover liabilities nearly 30×. Extremely strong balance sheet.

Healthy

Days Sales Outstanding

3.8 days

Customers are paying almost immediately. Collections are excellent.

Watch

Gross Margin %

17.4%

Improved in May but volatile — 9.8%–21.3% range over four months. Shipping recovery is the key lever.

Watch

A/R Concentration

88%

One customer holds 88% of open receivables. Balance is current — worth monitoring payment consistency.

⚡ Before Next Month

The Event

NJ Division of Taxation payment due — $7,454.78 is accrued on the balance sheet as sales tax payable.

Estimated Impact

~$7,455 minimum cash outflow. Any additional May/June taxable sales may increase the final amount.

One Action Item

Confirm total NJ sales tax owed and submit payment by July 20 to avoid penalties.

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This report is prepared by Prosynergy Bookkeeping based on data provided by the client. It is for informational purposes only and does not constitute financial, tax, or legal advice. Please consult a licensed professional for guidance specific to your situation.